Member Briefing March 18, 2026

Empire Manufacturing Survey: Activity Little Changed in March

Manufacturing activity held steady in New York State, according to the March survey. The general business conditions index fell seven points to -0.2, with just over 30 percent of firms reporting an increase in activity and the same percentage reporting a decrease.

• The new orders index was little changed at 6.4, pointing to a small increase in orders, while the shipments index fell six points to -6.9, indicating that shipments declined.
• The unfilled orders index rose two points to 10.8. The delivery times index rose ten points to 13.7, indicating that delivery times lengthened. Inventories moved higher.
• The supply availability index dipped three points to -3.9, suggesting that supply availability was slightly worse than last month.
• The index for number of employees rose two points to 5.8 and the average workweek index was little changed at 1.9.
• The prices paid index fell thirteen points to 36.6, and the prices received index was little changed at 21.4, indicating that input price increases moderated while selling price increases held steady.
• The index for future business conditions came in at 31.0, suggesting that firms continued to be optimistic about the outlook.
• The capital expenditures index rose three points to 21.6, a multi-year high, indicating that capital spending plans strengthened.

Read more at The NY Fed

NAM Survey Shows Manufacturers Trade Challenges Persist

As the review of the United States–Mexico–Canada Agreement gets underway, a majority of manufacturers report they utilize either Canada or Mexico for critical parts of their supply chains—at a time when trade uncertainty remains manufacturers’ top business concern, according to the National Association of Manufacturers Q1 2026 Manufacturers’ Outlook Survey. The survey also shows manufacturers’ optimism is rising, with 75.3% reporting a positive outlook for their company, up 5.4 percentage points from the previous quarter. Key findings:

• For the first time since 2023, manufacturers’ outlook topped the historical average of 74.3%, and manufacturers expect most indices to improve meaningfully over the next 12 months.
• 70.6% of manufacturers cited trade uncertainties as a top business challenge for the fifth consecutive quarter.
• For the second consecutive quarter, rising health care/insurance costs (69.8%) remained the second most-cited business challenge for manufacturers.
• Raw material and other input costs are anticipated to rise at the same pace as projected in Q4 (4.1%) and ranked as the third-highest business concern at 57.5%.
• Sales and production are projected to rise 3.8% and 3.5%, respectively, up from the previous quarter’s forecast of 2.8% and 2.4% growth.
• 54.6% secure critical inputs from either Canada or Mexico—82.2% of those manufacturers say they source raw materials or other inputs from either country.

Read more at The NAM

February Industrial Production Rises 0.2%, Slightly Above Estimates. Manufacturing Component also up 0.2%

U.S. industrial production expanded in February, marking the fourth consecutive month of increases and beating economist forecasts. Manufacturing and mining output both grew for the second month in a row, driven by a surge in business equipment production and capital spending. Productivity in the manufacturing sector also saw strong back-to-back gains, as factories have become leaner but more efficient. Manufacturing productivity rose 2.8% in Q3 2025 and 2.3% in Q4 2025 compared to a year earlier.

Motor vehicles and chemicals, plastics, rubber, and paper products lead the gains. Mining output increased 0.8%, following a 0.9% rise in January. The only drag came from utilities, which fell 0.6% due to a drop in natural gas output. Business equipment output has now risen for four straight months, lifting the index 6.4% above its year-earlier level. Separate data showed capital spending expectations among New York manufacturers are at their highest level in more than three years.

Read more at Floor Daily

Iran and the Middle East

• Hamas Holds Talks With Trump-Led Board As Iran War Strains Gaza Plan – Reuters
• Who Was Iranian Security Chief Ali Larijani? - WSJ
• Europe Refuses To Join Middle East War, Weighs Options To Secure Strait Of Hormuz – France 24
• Why Escalation Favors Iran – Foreign Affairs
• Iran Says Nuclear Doctrine Unlikely To Change, Hormuz Strait Needs New Protocol - Reuters
• Iran Strikes Tel Aviv With Cluster Warheads In Retaliation For Killing Of Security Chief - Reuters
• U.S. Reaper Drones Take the Fight to Iran, but at a Cost - WSJ
• Iran Says Russia And China Providing ‘Military Cooperation’ - Politico
• How Does The Iran War Affect Fertiliser Supplies, Prices And Food Security? - Reuters
• A Visual Guide to the Scale of the U.S.-Israeli Air War on Iran - WSJ
• Interactive Map – US and Israeli Attack in Iran – ArcGIS Story Maps
• Map – Conflicts in the Middle East – Live Universal Awareness Map

Ukraine

• Zelenskyy And Starmer Urge Continuing Support For Ukraine Against Russia As Iran War Steals Focus – AP
• Turkey Ready To Host Next Round Of Russia-Ukraine Talks, Fidan Tells Lavrov - Reuters
• Drone-Struck Russian LNG Tanker Threatens ‘Ecological Disaster’ In Mediterranean – Financial Times
• Zelenskyy Says Russia Has Already Earned Back $10 Billion Of Its 2026 Deficit In 2 Weeks Of The Iran War – Business Insider
• Russian Official Say Ukraine's Drone Development Means No Region Can Feel Safe, TASS Reports - Reuters
• Not One Molecule! EU Rules Out Relaxing Russian Gas Ban To Ease Energy Crisis - Politico
• Interactive Map: Assessed Control Of Terrain In Ukraine – Institute For The Study Of War
• Map – Tracking Russia’s Invasion Of Ukraine – Live Universal Awareness Map

Other World Headlines

• Banksy’s ‘Real Name Revealed In 26-Year-Old Police Report’ – The Times
• Pakistan Air Strike Kills At Least 100 At Kabul Drug Rehab Centre – BBC
• EU Sanctions Iran Group That Hacked Charlie Hebdo - Politico
• Rubio On Cuba: ‘They Have To Get New People In Charge’ – The Hill
• Cuba Struggles to Revive Obsolete Power Grid After Nationwide Blackout - WSJ
• China Codifies Ethnic Assimilation With New ‘Unity’ Law - SCMP
• 5 Takeaways From France’s Local Elections - Politico
• Russia Says It Supports Cuba After Trump Says He Will 'Take' The Communist Republic - Reuters
• Takaichi Says Trump Visit to Be ‘Extremely Difficult’ After Warship Spat - Bloomberg
• Ecuador’s President Rejects Allegations That His Government Is Bombing Targets Inside Colombia - AP
• Britain Hit By ‘Unprecedented’ Meningitis Outbreak, Two Students Dead – France 24
• Millions Without Electricity As Cuba's Power Grid Collapses - BBC

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Hochul Says She'll Announce Proposed Changes To 2019 Climate Law This Week as Budget Negotiations Begin

New York Gov. Kathy Hochul said she’ll be announcing her proposals for changes to the Climate Leadership and Community Protection Act (CLCPA) later this week. “We’ll be announcing them this week. I think we need a longer runway,” Hochul told reporters in Buffalo Monday, referring to the dates by which the state must meet certain goals as outlined in the 2019 climate law. The CLCPA mandates the state lower greenhouse gas emissions to 40% of 1990 levels by 2030, and by 85% by 2050. The governor has also floated changing the formula by which success is measured. Hochul has leaned heavily on a recent NYSERDA memo that forecast increased utility costs if the law isn’t changed.

The CLCPA will likely be the key sticking point as state budget talks begin among the governor and the Democratic-led Legislature, which doesn’t seem eager to make changes. Earlier this month, state Sen. Liz Krueger, chair of the Senate Finance Committee, led 29 of 41 Democratic state senators in sending a letter to Hochul “categorically” rejecting climate law rollbacks, insisting the NYSERDA memo is flawed. The Assembly’s one-house budget proposal includes addressing utility rates in multiple ways, including proposing Protecting Our Wallets Energy Rebates, or POWER checks. Meanwhile, state Senate Republicans are urging Hochul to reconvene the Climate Action Council to take up review of the CLCPA.

Read more at NY State of Politics

US Fed Expected To Keep Rates Steady As Iran War Impact Looms

The central bank's rate-setting Federal Open Market Committee (FOMC) began its gathering yesterday at 10:30 am Eastern time. The meeting comes as the Fed battles stubbornly high inflation and weak demand in the US labor market, with its dual mandates potentially at odds with one another. The US-Israel war on Iran, launched on February 28, is also expected to have major economic implications, with oil prices surging and supply chains disrupted.

Rising oil prices are expected to have knock-on global inflationary effects, including in the United States, where price increases have remained above the Fed's long-term two-percent target for years. In January, the Fed's preferred inflation gauge came in at 2.8 percent, with core inflation rising by 3.1 percent, its highest level since March 2024. The US labor market has also shown weakness in recent months, with unemployment ticking up in February due to weak labor demand.Before the war, a rate-cut was expected as soon as the summer, with another possible later in the year. On Tuesday, CME's FedWatch tool showed expectations of just one rate cut by the end of the year, likely coming after September.

Read more France 24

Democrats Deliver Latest DHS Funding Offer To White House as TSA Waits Increase

Senate Democrats sent over their latest proposal for immigration enforcement changes at the Department of Homeland Security as a shutdown of the vast department drags into its second month. Democrats have vowed to block funding until the administration agrees to immigration enforcement changes in the wake of federal agents killing two U.S. citizens in Minneapolis. Republicans, meanwhile, have rejected Democrats’ efforts to lop off immigration enforcement agencies and fund the rest of DHS.

Little progress has been made since toward an agreement that would fund agencies including TSA, FEMA, ICE and the Coast Guard. The White House is “currently reviewing” the offer, the official said. But Senate Majority Leader John Thune told reporters Tuesday that the offer “didn’t change much from where we were.” He said the White House has offered to increase funding for agent body cameras from an initial $20 million to $100 million and has proposed audits from the inspector general and reviews for noncompliance. “There’s a whole bunch of stuff in there ... that, in my view, have been significant gives on the part of the White House,” he said.

Read more at Politico

More Policy and Politics Headlines

• Trump Postpones His China Trip To Focus On The War In Iran – AP
• Two Paths to Tariff Refunds: Which Applies to You? - UHY
• Why the SAVE America Act Is So Contentious - WSJ
• Top US Security Official Quits, Says Iran Did Not Pose An Immediate Threat - Reuters
• Trump Rejects Counterterrorism Official’s Iran Claims – The Hill
• Justice Department Sues To Block California Clean Cars Rules – Ward’s Auto
• White House Chief Of Staff Susie Wiles Diagnosed With Breast Cancer - UPI
• Republicans Are Launching A Voting Bill Debate That Could Last Days Or Even Weeks - AP
• Republicans Collide With Trump Over No-Excuse Absentee Voting, SAVE Act – The Hill

What Intermittent Fasting Really Does For Your Body And Brain

Some scientists say the growing popularity of fasting is being fueled by research suggesting that, when practiced appropriately, certain forms can benefit overall health. “Intermittent fasting can reduce high blood pressure, improve cognition, and prevent and even reverse chronic diseases including diabetes, cardiovascular disease, and cancers,” says Mark Mattson, a neuroscientist at Johns Hopkins Medicine who has studied intermittent fasting for 25 years and has co-authored much of the research on the topic.

But some of the science remains nuanced, and the practice may be less impactful than is sometimes portrayed. “Although some studies have suggested fasting can reduce insulin resistance and inflammation, sometimes these benefits are overstated,” says Duane Mellor, senior specialist dietitian at the University Hospitals of Leicester NHS Trust in England. At the same time, some harms attributed to fasting—such as claims that it disrupts hormones—are often similarly overstated. “There's a lot of misinformation about this by social media influencers, but there's no evidence to show that fasting leads to hormonal disruptions in most women,” says Krista Varady, a professor of nutrition at the University of Illinois Chicago and a co-author of related research.

Read more at National Geographic

Upcoming Council Programs

Events

Manufacturing Champions Award Breakfast and Workforce Developers Expo - Thursday May 7, 2026 -7:45 - 10:00 AM. West Hills Country Club, Middletown.

Networks

HR Sub Council Meeting Topic TBD, April 23, 2026, 8:15 - 11:00 AM. Location Ulster BOCES Career Academy, iPark 87, Kingston.

Insight Exchange - On Demand Webinars

• See previous episodes here!

Training

Certificate in Manufacturing Leadership Program Spring Session, In Person at iPark 87 in Kingston. Supervisor Training Program for Hudson Valley Manufacturers. 7 Courses (8 full day sessions) April 29 - July 15.

Trade Wars

• US Finalizes Reciprocal Trade Deal With Ecuador – Supply Chain Dive
• Allies to Trump: We’ll Live With Tariffs, Just Don’t Make Them Any Higher - WSJ
• The (Tariff) Pandora’s Box With $130 Billion In It - WSJ
• U.S. To Probe 60 Economies For Allowing Import Of Forced Labor Goods - UPI
• Trump’s Temporary 10% Tariff Faces Further Legal Scrutiny – Supply Chain Dive
• India Aims To ‘Dramatically’ Deepen Ties With EU Amid Iran War, Global Turmoil - Politico
• New ‘Tariff Rebates’ Worth Hundreds – Or Thousands – Proposed: How Would They Work? – The Hill

NY Fed: Service Sector Business Activity “Declined Significantly” in March

Business activity continued to decline significantly in the region’s service sector in March, according to firms responding to the Federal Reserve Bank of New York’s Business Leaders Survey. While the survey’s headline business activity index was little changed at -22.6, the business climate index fell five points to -46.2, suggesting the business climate remained much worse than normal. Other findings:

• The employment index came in at -8.5, its seventh consecutive negative reading, suggesting employment continued to fall and the wages index edged down to 33.7.
• The prices paid index held steady at 62.5, and the prices received index was similar to last month at 28.8, pointing to little change in the pace of both input and selling price increases.
• The index for future business activity fell five points to 12.7, signaling that firms expect only a small pickup in activity over the next six months.
• Employment is expected to grow modestly.
• Firms planned modest increases in capital spending.

Read more at The NY Fed

New ABB Study: Cybersecurity Now Ranks As Top Concern Among Automakers, Suppliers

Automotive manufacturing leaders rank cybersecurity as their top concern across all regions of the world and supplier tiers, beating out more traditional issues such as cost reduction and newer ones such as AI and flexible manufacturing, according to a newly minted survey.  ABB Robotics’ Automotive Manufacturing Outlook Survey for 2025, the results from which were released last week, found that 95% of vehicle makers rated cybersecurity as a significant manufacturing concern, with 53% ranking it “extremely significant.”

“Cybersecurity is no longer something manufacturers are thinking about for the future—it is something they must address at the heart of production today,” said the managing director of ABB’s automotive business line, Joerg Reger. “As factories become more connected, software-driven and data-intensive, cybersecurity has become a core manufacturing discipline.” Across companies, OEMs and first- and second-tier suppliers ranked cybersecurity as the most significant area. The ranking also dominated across manufacturers in North America, Europe and the Asia-Pacific region. Cost reduction and automation and robotics followed closely behind. 

Read more at Smart Industry

Army Awards Anduril $20B Contract With An Eye Toward Counter-Drone Capabilities

The Army has awarded a mega contract to Anduril Industries that the U.S. military hopes will boost its ability to defeat drone threats. The Pentagon unveiled the $20 billion firm fixed-price deal Friday evening as part of its daily list of contract announcements. That announcement addressed the types of technologies involved, but was scant on details about the mission areas the capabilities would be applied toward. Anduril, which was founded in 2017 by Palmer Luckey, has landed large contract awards in recent years from the Pentagon for a variety of defense technologies, including hardware and software for uncrewed systems and counter-UAS tools. The company’s AI-fueled Lattice software platform, which provides a C2 interface, has been a centerpiece of many of those capabilities.

Under the agreement, Anduril will “consolidate current and future commercial solutions — including the proprietary, open-architecture, AI-enabled Lattice suite, integrated hardware, data, computer infrastructure, and technical support services — into a unified, mission-ready capability supporting the Army’s evolving operational and business needs. Work locations and funding will be determined with each order, with an estimated completion date of March 12, 2036,” according to the contract announcement.

Read more at Defense Scoop

GE’s Palantir AI Partnership is Expanding

GE Aerospace and Palantir Technologies Inc. have expanded their current partnership into a multi-year cooperative effort to implement agentic AI-enabled technology to maximize GE’s production of military aircraft engines, to improve productivity and ensure availability and readiness of defense systems. It’s understood that Palantir software will aid GE in predicting equipment failures, identifying supply chain constraints, and optimizing parts availability for customers.

“Agentic” artificial intelligence is a class of AI applications capable of working autonomously to achieve specific goals by carrying out multi-step, complex functions with limited human involvement. “GE Aerospace has spent decades building and sustaining the engines that drive American airpower. By pairing their deep engineering expertise with Palantir's AI-enabled software, our partnership is helping to unify data across the enterprise to keep more aircraft available and more airmen trained,” stated Palantir’s head of Defense technologies, Mike Gallagher.

Read more at American Machinist

Two-Legged Robots Have Taken Over A Job In A South Carolina Auto Parts Plant. That’s Just The Start.

Stepping gingerly across the metal floor of a Schaeffler auto-parts factory, a most unusual worker toils away. Iit holds its four-fingered hands at chest level until it reaches its objective: a 25-pound basket of bearing components fresh from a stamping press. The worker uncurls its claw-like fingers, daintily grips the basket by its edges and walks it over to a conveyor that will send it through an industrial washing machine. About a minute after it grabbed the first basket off a pallet, it returns to grab another. So it goes for eight hours a day, basket after basket, pallet after pallet.

A year ago, a person did this job. Now it belongs to a humanoid robot called Digit that was built for grunt work. Its legs angle backward like an ostrich’s, increasing its stability and lifting power. Its LED eyes blink to signal to human co-workers where it is directing its attention. Schaeffler, a global manufacturer that makes parts for cars and airplanes, said it plans to deploy more of the robots in the coming months. Factories have used stationary robots since the 1960s for tasks such as welding frames and attaching windshields. But advances in batteries, motors and artificial intelligence have spawned a new generation: general-purpose robots that can walk around a plant and perform multiple jobs.

Read more at The WSJ

Cobots Handle Furniture-Making Drudgery, People Focus on Company Growth

Robots didn’t take anyone’s job at furniture-maker Foliot because the things that machines excel at doing aren’t the jobs that people want. Based in Saint-Jérôme, Quebec, Canada, Foliot primarily makes furniture from laminate. Like many producers, it had trouble finding operators with the right profile—the capacity to understand complex equipment who also didn’t mind repetitive tasks.

“We realized that automating some of these operations would be a very good solution, because we could keep the good operators and the people that [have] the right skills to overview these cells,” says Simon Perrault, vice president of operations. “Instead of being just a panel processor they’d be supervising fully automated cells.” Employees welcomed the relief from the dull and dirty task of feeding laminate panels into edge bender and CNC machines. After a successful pilot, Foliot installed 11 units at the Saint-Jérôme plant and scaled to its facility in Las Vegas, Nevada.

Read more at IndustryWeek

Applied Materials and SK Hynix forge R&D partnership in Silicon Valley

Applied Materials, an equipment, services and software supplier for chipmakers, said it has partnered with South Korea-based SK Hynix to accelerate memory innovation and address semiconductor-related challenges. Engineers from both companies will work together at Applied Materials’ Equipment and Process Innovation and Commercialization (EPIC) Center, a $5 billion research and development facility expected to open in Silicon Valley later this year, as part of a long-term agreement.

The companies look to advance the performance of memory chips through innovation in materials, process integration and advanced packaging, according to a news release. This effort comes as technology firms navigate a global shortage of memory chips driven by surging artificial intelligence demand. The agreement adds another member to Applied Materials’ EPIC Center, designed to be the largest and most advanced U.S. facility for collaborative semiconductor process technology and manufacturing equipment R&D. Samsung Electronics and Micron have also become partners on the project in recent weeks.

Read more at Manufacturing Dive

Tesla, LG Plan $4.3B Battery Plant

The U.S. government on Monday said electric vehicle maker Tesla and South Korea's LG ​Energy Solution had signed a supply agreement to ‌build a $4.3 billion lithium iron phosphate (LFP) prismatic battery cell manufacturing facility in Lansing, Michigan, with an expected production launch in 2027. "American-made ​cells will power Tesla's Megapack 3 energy ​storage systems produced in Houston, creating a robust ⁠domestic battery supply chain," the U.S. Department of the ​Interior said in a statement on Monday.

A source told Reuters ​in July that LG Energy Solution had signed ​a $4.3 billion deal to supply Tesla with energy storage system ‌batteries ⁠as the U.S. company looked to reduce its reliance on Chinese imports due to tariffs. At the time, the South Korean company said it had signed a $4.3 ​billion contract ​to supply ⁠LFP batteries over three years globally, without identifying the customer or saying if ​they would be used in vehicles or ​energy-storage ⁠systems.

Read more at Reuters

Inside Pratt & Whitney’s Adaptive Engine For Future Fighter Jets

With the US Air Force’s (USAF) aim to stay dominant in the combat environment, Pratt & Whitney’s Next Generation Adaptive Propulsion (NGAP) program will deliver efficiency, power, and versatility during multiple flight regimes. The company is designing a next-generation adaptive cycle engine that offers on-demand performance and efficiency to future fighter jets. In addition digital tools are helping Pratt & Whitney accelerate engine development. Moreover, model-based systems allow the manufacturer to streamline the supply chain.

Conventional fighter jet engines are designed to deliver mission-specific propulsion efficiency. Adaptive cycle engines (ACE) are redefining how engines are configured to cater to diverse missions. The ACE is designed to adapt to the multi-mission capabilities of the aircraft. Unlike traditional engines, adaptive engines offer optimized thrust and efficiency across multiple flight regimes. A conventional engine designed for maximum thrust will not fulfill the mission requirements of a low-observable stealth aircraft. Adaptive engines can reconfigure themselves during or in between flights to switch from combat mode to stealth mode.

Read more at Aerospace Global News

Daily Market Update March 17, 2026

The Apr ’26 natural gas contract is trading down $0.05 at $3.07. The Apr ‘26 crude oil contract is up $1.32 at $94.82. 

Read more at NRG

Learn more about the Council of Industry Energy Buying Group

Quote of the Day

“These are days of special perplexity and depression, and the path of public duty is unusually rugged.”

Grover Cleveland - Governor of New York and the 22nd and 24th president of the United States. He was born on this day in 1837.

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